Even if everyone uses Chinese open weight models at somw point, how do you make money creating them?

This is just typical Chinese behavior. Flood the market with cheap or free stuff and wait for your competitors to die off. Then you have a monopoly. (Maybe you were implying that would happen, dunno)

I mean you could ask the exact same question about other foundational tech like Linux. And the real question here is what stops Americans companies from producing things cheaply and at scale the way Chinese companies do. You frame it as some nefarious tactic, but the reality is that they're just more efficient and American companies are unable to compete with that.